“Overall this is a measured budget that balances fiscal responsibility and a path to budgetary sustainability, with important measures to boost businesses competitiveness and reduce our high corporate tax burden.”
Key players in Australian small business have generally embraced the measures in last night’s Federal Budget aimed at this crucial sector of the national economy.
Peter Strong, CEO of the Council of Small Business Australia – COSBOA – said that the 2016 Budget continues the good news for small business that came from the 2015-16 budget and from other key decisions made between time.
Strong congratulated Treasurer, Scott Morrison, and Small Business Minister and Assistant Treasurer, Kelly O’Dwyer, for putting the economy in a better position to deal with, and take advantage of, change.
“The big ticket item is that the threshold for determining what is a small business has been raised to $10m. This creates a change immediately for government support actions around tax breaks, instant tax write offs and other initiatives,” he said. “This gives more businesses access to the $20,000 instant tax write off announced in last year’s budget.
“There is also another tax decrease for these businesses,” he added, “Tax has decreased 2.5 per cent in 2 years – a good message to send to businesses who want to grow and employ, or start to export and take advantage of the global economy.”
Australian Industry Group Chief Executive, Innes Willox also believes the Budget is a positive one.
“Overall this is a measured budget that balances fiscal responsibility and a path to budgetary sustainability, with important measures to boost businesses competitiveness and reduce our high corporate tax burden; to continue efforts to make our education and training system more effective; to invest further in transport infrastructure and to improve job outcomes for young people,” he said.
“In an important boost to the capacity of businesses to invest and create jobs, the Budget sets a gradual path to restore the competitiveness of Australia’s company tax system,” Willox added.
“The plan to cut the company tax rate to 25 per cent is an excellent one however the timeline could and should be shortened,’ Mr Reed added. ‘It’s like SMEs have been given a terrific present but told it is coming in pieces and they can’t open it up for a decade.”
“MYOB also welcomes the move to widen eligibility for the $20,000 tax write off for small businesses however the Government should consider making this a permanent feature to better support the economy,” Reed concluded.
James Chin Moody, Co-founder and CEO of delivery start-up Sendle, said, “Small and medium sized enterprises are the powerhouse of the economy, employing more than two thirds of the workforce.
“Increasingly, smart young people see startups and contracting – owning a small business – as a career,’ he added. ‘It’s pleasing to see the government back these companies in the latest budget. The tax cuts and incentives for small and medium sized businesses will help level the playing field and allow innovators such as Sendle and Xero, to invest more in growth to take on big businesses.”
This article first appeared on Inside Small Business and was written by Online Editor Tim Ladhams.